Churn is not the problem, but rather a symptom of it.
In order to stem the flow of customers leaving your product or service, you will need to assess your business at several levels, see where the gaps are, and close them. Here, we’ll discuss some causes of early and mid-stage churn, and how to make sure your customers stick around.
It’s safe to say we all know what it feels like to love a new tool for a week or two, only to start feeling like you’re running on a treadmill to nowhere, as opposed to making the desired progress. SaaS companies can help remedy this problem by keeping customers engaged and continuing to nudge them towards the next usage milestone.
If you’ve ever had an issue with a tool or platform, chances are the first thing you looked for was a way to live chat with someone on the support team. Honestly, no one wants to have to type out a whole email, then wait however many business days for a reply—or, worse, make an actual phone call. This is why it’s critical to provide your customers with a quick, convenient way to receive help from your CS or support team.
When we attended SaaStock in NYC last month, Patrick Campbell—Co-founder and CEO of ProfitWell—gave a session on retention. It was, in part, the inspiration for this post. One of the most interesting things he touched on was the importance of treating payment failure as an opportunity instead of as inevitable churn.
Most SaaS companies are born out of a specific problem that lacks an efficient solution. This means that users will engage only when that problem arises for them, often resulting in a product that, frankly, isn’t useful enough to be sticky. Just as great onboarding is critical to reducing early churn, strategic product development will protect you from churn that occurs when people realize that, having solved an isolated problem, they no longer need what you’re selling.